Increased Renter Pool is Driving Multi-Family Construction

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HKJ Construction is seeing a surge in apartment and multi-family construction, driven by an unlikely contributor, student debt.

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“It’s true”, says Scott Niebauer, director of business development for Harold K. Jordan & Co., an Apex, NC-based general contractor with dozens of projects in the Wilmington market. “A recent Multi-Housing News article outlined the scenario. Last year the average student debt per loan recipient was more than $35,000. That is $8,000 more than the average home down payment, the magazine pointed out, citing a U.S. Multifamily Research Brief from CBRE.”

Niebauer further explains the cause and effect by stating that rising home values, coupled with less inventory of lower-priced homes aggravates the problem of the high student loan debt, meaning a “perfect storm” of giving most millenials little to no hope of purchasing a home in the short term.

What this means for the multi-family building contractor like HKJ Construction, or for developers looking for a steady and sure return, is that at least for the foreseeable future, apartments and other multi unit construction is a solid investment, with a quicker return.

Scott Underwood, a partner in Woodfield Development, a developer based in Isle of Palms, S.C. that utilizes HKJ Construction for its Wilmington development says, “The renter pool is substantial now, so multifamily is a strong place to be from a development standpoint, a construction standpoint, and an investment standpoint.”

Niebauer adds, “We like to say that your construction project, no matter the size, doesn’t have to be hard. At HKJ Construction, we take on the tasks that can slow a project down, cause delays or stall a project and handle them with ease, meaning your project is completed on time, on budget and ready to produce the return on investment you are hoping for. With three decades of experience, hundreds of large scale projects across the Carolinas and Virginia and countless satisfied clients, we simplify your life by making it easy to work with us.”

A few of the steps taken by HKJ Construction to ensure a smooth project include:

  • Pre-ground breaking site evaluations to identify any issues.
  • Constructability reviews to determine the cost information that can be created and design changes that could be made for a more efficient, cost-effective layout.
  • Accurate budget information based on current market pricing of labor and materials provided by subcontractors.
  • Comprehensive schedules for managing construction and making decisions about the occupancy and management of the property.

Harold K. Jordan & Co. (HKJ) is a general contractor that specializes in multi-family residential communities and commercial housing, both public and private. Founded by Harold K. Jordan the company is headquartered in Apex with offices in Wilmington, Charleston, and Myrtle Beach. A quick email to info@hkjcontruction.com will start you on the path to a completed project that you can be proud of. You can also call us in Apex, NC at (919) 303-3652, Wilmington, NC at (910) 256-4388 or Charleston, SC at (854) 999-3156 where we look forward to solving all your construction problems, with HKJ solutions.